Key Takeaways
-
Thirty-four percent of CFOs rated the current North American economy favorably, down from 40% in 1Q23. CFOs also reported lower expectations for economic conditions to improve in a year across all five regional economies.
-
Economic/financial market risks (81%), geopolitical risks (57%), and cyber risks (56%) topped CFOs’ list of most worrisome external concerns.
-
Execution risks to strategies and/or transformation topped CFOs’ list as their most worrisome internal concern, edging out talent risks after nine consecutive quarters.
-
Slightly more than half (54%) of CFOs indicate that their CEOs are asking them to focus on cost reduction while 40% say their CEOs want them focused on strategy/transformation.
-
CFOs’ optimism for their companies’ financial prospects fell to 30% from last quarter’s 32% and resulting in a net optimism of +6.
-
The proportion of CFOs saying now is a good time to take greater risks dropped to 33% from last quarter’s 40%.
-
Growth expectations for revenue rose to 4.9% from 4.4%, while growth expectations for earnings dropped to 4.4% from 5.4%.
Why it matters to CFOs
Each quarter, CFO Signals™ tracks the thinking and actions of leading CFOs representing some of North America’s largest and most influential companies. Since 2010, the survey has provided key insights into the business environment, company priorities and expectations, finance priorities, and CFOs’ priorities. Participating CFOs represent diversified, large companies, with 81% of respondents reporting revenue in excess of $1 billion. Just under one-quarter (23%) are from companies with greater than $10 billion in annual revenue.
Economic outlook
CFO sentiment toward current conditions rose in four of the five economic regions covered in the survey. The exception is North America, where 34% of CFOs rated the current economy as good or very good, decreasing from 40% in 1Q23.
However, across all five economic regions, CFOs are…
Read the full article here